Lump Sum

[Alan1]

Hi I have an old company pension dating back to 1992. I am 55 next year and was considering taking this as a lump sum. It is worth £1800 per annum. Does anyone know what I would get.

[woofgang]

you need to ask the pension management company

[TonyV]

I used this company to deal with mine. No commission payable by me.

https://www.retirementline.co.uk/landing/?v=just-pension&keyword=just%20pensions&adposition=1t1&device=t&gclid=CjwKCAiAkrTjBRAoEiwAXpf9CVC-GC70IyabS2TcV8ffFX_Fw-kLqxd89BfXpMATzwz5eo9UjZcCaRoC0zAQAvD_BwE

[fiction-factory]

If you take the whole pot as a lump sum you will pay tax on three quarters of it.
They will give you a lump sum value/transfer value if you ask.
Where did the £1800pa figure come from- is that based on age 55 or is that what you'd get at the scheme pension age (60 or 65). Did it include widow's benefits? Index linking or fixed?
My guess is roughly £50000 but it could be a lot less or a lot more depending on the basis . You neeed to get a quote

[fiction-factory]

I just replied to your other question which has now been removed -as a 'duplicate' I assume.
I suggest you reply here to add the amendments- eg I think it's actually worth only £1400 pa.

[Alan1]

Hi fiction factory.Yes apologies looked at the wrong amount.The £1400 per annum figure came from a preserved benefit entitlement final salary letter I have just received.

[fiction-factory]

The letter should also give a cash value/transfer value/ETV.
Is that preserved benefit what you would get at age 55. Is it updated annually or fixed? Is there a widow's benefit? All these would affect the transfer value.
if the lump sum value is not stated you need to ring and ask. Remember only 25% is tax free so you would pay tax at highest marginal rate on the remaining 75%

[Alan1]

Hi fiction factory.The transfer value says available on request. It also says it will increase by the statuary revaluation orders. there is also a spouses annual benefit of £377 per annum.

[fiction-factory]

The letter usually gives you at least two sets of figures- (a)the full annual pension and (b) a tax free lump sum plus a reduced annual pension. Does the letter include this info?

[bobc1941]

One of the things you need to consider is the state of your health, if you are in bad health take the lump sum if it has a widows pension make sure your wife knows.